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3 Stocks Near 52-Week Lows Worth Buying

Sean Williams
January 24, 2012

Just as we examine companies each week that may be rising past their fair value, we can also find companies potentially trading at a bargain price. While many investors would rather have nothing to do with companies tipping the scales at 52-week lows, I think it makes a lot of sense to determine whether the market has overreacted to the downside, just as we often do to the upside.

Here's a look at three fallen angels trading near their 52-week lows that could be worth buying.

Just playing around
The holiday season was not kind to toymakers. Recently, JAKKS Pacific (Nasdaq: JAKK  ) , the company that licenses toys under the Pokemon brand name, warned investors that its fourth-quarter sales would miss its previous guidance by a mile. Likewise, Mattel (Nasdaq: MAT  ) , even with its forecast of 7% sales growth and a 2%-4% jump in profits, came in with preliminary guidance below the Street's expectations. It really wasn't a surprise then when Hasbro's (Nasdaq: HAS  ) preliminary guidance also failed to impress.

Hasbro expects revenue in the fourth quarter to rise by 4% to $1.33 billion, but that fell short of the $1.39 billion consensus figure. Still, this isn't the time to abandon this dividend diva. Obviously, the toy sector will have its ups and downs, but Hasbro has grown its EPS in every year since 2002. More impressively, Hasbro's quarterly dividend has spiked tenfold from just $0.03 in January 2004 to $0.30 right now. Now yielding 3.7%, it remains a retail name that should remain on many long-term investors' buy lists.

Foreign telecoms for the win
Three weeks ago, I recommended South Korea's dominant mobile carrier SK Telecom as a great way you can get into a high-yielding foreign telecom at a discounted price. This week I'm going right back to Korea and recommending its rival, KT (NYSE: KT  ) .

Just like SK Telecom, KT has been growing at a slow and steady pace over the past decade, with sales growth being interrupted only in 2003. What's really compelling about KT -- and what a lot of investors don't realize because websites like Yahoo! Finance list the company's dividend payout as "N/A" -- is that KT's dividend is an absurdly delectab